To understand why the Uzumaki who had been selling their wares in the Konoha marketplace were so shocked and upset to learn that Naruto was an Uzumaki, one would have to go back several years to around the time Naruto was six or so.

Before Naruto had stopped crying and started making a nuisance of himself, he had been completely under the radar of the Uzumaki merchants as the last of a long line of caretakers had been the one to get Naruto's food and other supplies before he was left to his own devices. When he started the Academy when he was six, it was decided that he was old enough to care for himself after his caretaker had falsely claimed that Naruto was an independent and self-sufficient little boy who was already fully capable of cooking and tending to his apartment. It was then that Naruto began appearing in the marketplace and catching the notice of certain stallkeepers who came to sell their wares a few times a year when they were in season.

The man who had adopted the position of spokesperson for the Uzumaki survivors who had mainly been those who had been outside Uzu during its fall had taken particular note of the boy who had introduced himself as "Uzumaki Naruto", and decided to ask the Hokage about him with a mind to finding the boy's closest relatives and informing them that there was another surviving member of their family. When he asked the Hokage, the man had told him point blank that the boy was not actually an Uzumaki, and that he'd been named in honor of Kushina after one of the rescue workers who'd found him after the Kyuubi attack had noticed that he had Kushina's sunny personality. The man told the Hokage that the orphan could wear the symbol of Uzushogakure like all Konoha ninja did, but he couldn't wear the Uzumaki clan symbol, informed the other Uzumaki that he had connections to of what the Hokage told him and considered the matter closed after that.

Sure, some of the Uzumaki had had their suspicions afterward when they noted the boy's bone structure and the odd verbal tic that cropped up in the clan occasionally which the boy possessed, but they had been silenced after they were informed that the boy had Senju blood which was common amongst the Uzumaki as well as the general Konoha populace. The bright blond hair and bright blue eyes weren't Uzumaki traits after all, and since the boy possessed them, it was more likely that he would have been a Konoha Senju rather than an Uzumaki with Senju blood, as most of those had at least some red in their hair.

After having had their suspicions in regards to Naruto's lineage put to rest for years, hearing that the boy whom they'd allowed the locals to snub, shun, and toss out of their shops and stalls right in front of them was indeed an Uzumaki and that they'd been lied to by the Hokage who had sworn to uphold the alliance between their clan and the village even after their village was gone was a nasty shock. For one former ninja who had retired to grow watermelons following the destruction of his village because he couldn't bring himself to serve another, even Uzushiogakure's eternal ally, discovering that his family had been lied to about a boy who could have been surrounded by kin if they'd but known, this shock brought forth a number of other suspicions that had been brewing quietly in the back of his mind for a couple decades. Konoha still stood, and Uzu had fallen after all.

Though he probably should have kept himself silent about those suspicions until he was outside the village and had a chance to consult with other members of his clan, the impetuous nature that was common amongst the men of his clan - himself included - had led him to air his grievances out in the open despite the risks of doing so. In those moments that Uzumaki Mita had courted death by flinging his old dogtags into a hostile and edgy crowd, he hadn't cared what would happen to him or his younger cousin Rei. All he cared about was the fact that he and his had been betrayed, and he wanted everyone to know it.

When a child who had remained in the markeplace, a child who should have been halfway through his schooling, asked where Uzushiogakure was, it further served to add fuel to the fire...

While a man who was many years out of practice flung himself on ninja who had been his allies moments before, his cousin Rei fled the marketplace leaving her wares behind. She didn't flee out of cowardice, but to alert the clan to what she saw as Konoha's treachery instead.

While Uzumaki Mita was making a final stand that would go down in history and legend in the marketplace, Uzumaki Naruto - who was unaware of what was going on - was getting ready for the day, munching on his usual egg, toast, and milk that was a bit off before getting dressed. Since he'd been given the day off by his sensei who'd gotten off by the skin of his teeth because he'd never actually said his parents' names and used his mother's old nickname when speaking of her and had never done That to him despite what some people seemed to think for some strange reason, he had no particular plans for that day. He intended to visit his cousin whom he'd met yesterday, and water his plants, but aside from that, nothing.

As he dressed and made his way out the door, a rumor about him spread through the village like wildfire, and it wasn't the one that Sakura's mother intended to spread. This rumor spread not through the adults, but through the children, most of whom were hearing of Uzushiogakure for the first time. As the rumor spread it grew greater and more fantastic with each retelling, especially after an enterprising Academy student had confirmed the existence of the former village during a trip to the library.

By the time Naruto had brought Karin to his apartment to show her his plants after a day of hanging out and talking and playing games Karin hadn't had a chance to play in a long time and Naruto hadn't had a chance to play in...ever, most of the children in Konoha were convinced that Naruto was the son of the melon seller who had died in the confrontation in the marketplace after leveling said marketplace, and that the man had been the ruler of Uzushiogakure. The truth of the matter was of course both more and less spectacular at the same time, as the man in the marketplace had merely been a second cousin twice removed who'd been looking forward to a life as a career Chunin prior to Uzu's fall, and Naruto's parents were much more important.

By the time that Karin was returning to the inn to find her stuff at the door and a note from Orochimaru that basically stated that things weren't working out between them and that she'd likely be happier elsewhere, parents from all over Konoha were hiding frowns and other looks of displeasure and dismay from their faces as their children regaled them with the stories they'd heard that day. As far as they were concerned, the Uzumaki name was mud thanks to the number of ninja who had lost their lives that day.

&!&!&!&!&

In the Hokage's office, a certain old man was feeling as if he'd had his nose brutally rubbed into yet another one of his mistakes as he signed yet another condolence letter that would be little to no comfort to those whose family members wouldn't be coming home that evening despite the fact that they should have been safe within the walls of their own village. Had he not lied to the Uzumaki survivors when they'd come asking because they would have had every right to take Naruto thanks to the agreement he'd signed when Kushina had arrived in Konoha, this would not have happened. Lie to them he had however, and fifteen Jounin and twenty-seven Chunin and three Genin had been the price he had paid. That of course was only the initial cost, since the potter had managed to get out of the village.

Word of this incident could not be contained and was already spreading far and wide, and Konoha was being painted as the villain in this matter, and there was little he could do to fix that because Konoha had indeed been in the wrong in this incidence. The best they could do would be to hunker down until it blew over and do as much damage control as they could.

Even worse than the loss of face and forces for the village however was that based on the reports he'd received, Naruto - who had been an innocent in this matter - would likely be paying a price for this as well. Many would not see that as worse and instead see it as Naruto getting what he deserved for causing this problem, but the ninja had known what they were in for when they'd signed up, and Naruto's only crime in this matter had been to be born.

If he'd known what the cost of lying to the Uzumaki would be, he would have told them the truth and begged that Konoha be allowed to keep him instead.